Correlation Between SWISS WATER and GungHo Online
Can any of the company-specific risk be diversified away by investing in both SWISS WATER and GungHo Online at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining SWISS WATER and GungHo Online into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SWISS WATER DECAFFCOFFEE and GungHo Online Entertainment, you can compare the effects of market volatilities on SWISS WATER and GungHo Online and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in SWISS WATER with a short position of GungHo Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of SWISS WATER and GungHo Online.
Diversification Opportunities for SWISS WATER and GungHo Online
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between SWISS and GungHo is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding SWISS WATER DECAFFCOFFEE and GungHo Online Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GungHo Online Entert and SWISS WATER is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on SWISS WATER DECAFFCOFFEE are associated (or correlated) with GungHo Online. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GungHo Online Entert has no effect on the direction of SWISS WATER i.e., SWISS WATER and GungHo Online go up and down completely randomly.
Pair Corralation between SWISS WATER and GungHo Online
Assuming the 90 days horizon SWISS WATER DECAFFCOFFEE is expected to generate 1.25 times more return on investment than GungHo Online. However, SWISS WATER is 1.25 times more volatile than GungHo Online Entertainment. It trades about 0.03 of its potential returns per unit of risk. GungHo Online Entertainment is currently generating about 0.04 per unit of risk. If you would invest 188.00 in SWISS WATER DECAFFCOFFEE on October 7, 2024 and sell it today you would earn a total of 62.00 from holding SWISS WATER DECAFFCOFFEE or generate 32.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SWISS WATER DECAFFCOFFEE vs. GungHo Online Entertainment
Performance |
| Timeline |
| SWISS WATER DECAFFCOFFEE |
| GungHo Online Entert |
SWISS WATER and GungHo Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SWISS WATER and GungHo Online
The main advantage of trading using opposite SWISS WATER and GungHo Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SWISS WATER position performs unexpectedly, GungHo Online can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in GungHo Online will offset losses from the drop in GungHo Online's long position.| SWISS WATER vs. Corsair Gaming | SWISS WATER vs. Sumitomo Rubber Industries | SWISS WATER vs. PT Wintermar Offshore | SWISS WATER vs. Goodyear Tire Rubber |
| GungHo Online vs. Nintendo Co | GungHo Online vs. Nintendo Co | GungHo Online vs. Sea Limited | GungHo Online vs. Electronic Arts |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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